Globe Metals and Mining (ASX:GBE) has entered into an at-the-market equity facility with New York-based financier Long State Investments, providing up to $20 million over a two-year period.
Under the facility, Globe, which has a market capitalisation of $39.20 million, intends to place 14 million shares with Long State for no consideration.
Should the company elect to use the facility, Globe may sell any number of shares up to the number of shares held by Long State. Globe can also nominate the minimum issue price and other conditions, such as the number of shares that Long State can sell in a particular period.
Globe CEO Paul Smith says establishing the facility diversifies the company’s funding base for developing the Kanyika Project in Malawi.
“This marks the initial step in our recently announced funding strategy, aimed at best supporting the project while minimising shareholder dilution,” he says.
“We look forward to working with Long State on the development of key relationships associated with the project.”
Long State will be paid an implementation fee of $80,000 — payable in cash or shares — and a 6% cash commission on all amounts subscribed for under the facility.
In addition, Long State has agreed to provide strategic advisory services to Globe, including facilitating introductions to potential off-takers and strategic partners.
Long State Investments is a private investment company with offices in New York and Hong Kong. The firm focuses on venture capital and private equity investments, specialising in investing and funding growth-oriented companies, alongside advisory on accretive initiatives.
Globe’s Kanyika Project is considered prospective for niobium and lies 55km north-east of Kasangu in central Malawi. The Kanyika operations will produce a pyrochlore mineral concentrate that contains both niobium and tantalum.
Write to Aaliyah Rogan at Mining.com.au
Images: Globe Metals and Mining
